Southwest Airlines has been fined $140 million by the United States Department of Transportation (DOT) for its operational meltdown during the 2022 holiday travel season on Monday, 18 December 2023.
The Department of Transportation Officials revealed that the civil penalty leveled against the airline is 30 times larger than any previous fine against an airline.
The Government requires Southwest to start issuing a $75 flight credit to any passenger whose arrival is delayed more than 3 hours when it is the airline’s fault, mechanical issues inclusive.
Transportation Secretary Pete Buttigieg disclosed in a statement; “Today’s action sets a new precedent and sends a clear message: if airlines fail their passengers, we will use the full extent of our authority to hold them accountable.”
The DOT said $140 million fine adds to the about $600 million in refunds and reimbursements that had previously been agreed to over the meltdown. Officials said they will use the majority of the fine to compensate customers affected by future Southwest flight cancellations and other delays.
As a massive winter storm battered the United States during the 2022 holiday season, the airline cancelled more than 16,900 flights, stranding more than 2 million passengers, the DOT further said.
Southwest Airlines said; “We are pleased to have reached this consumer-friendly settlement, which includes a new, industry-leading policy to compensate Customers during significant delays and cancellations,” the airline said in a press release.”
Transportation officials said their investigation of the days long incident included “examining tens of thousands of pages documents, conducting several multi-day, in-person audits and site visits at Southwest’s headquarters, reviewing thousands of consumer complaints, and consulting with various third parties, such as airports.”
That investigation found that the airline had violated consumer protection laws on providing customer service, prompt flight-status notifications, and prompt refunds, DOT officials stated on Monday.
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The $90 million fund provides an additional avenue for compensation to future Southwest passengers if their travel plans are interrupted. Southwest is required to issue you a $75 voucher if your travel is impacted by anything within Southwest’s control and you arrive at your destination three hours or more after your scheduled arrival time. These vouchers are valid for “future use on the airline,” according to the DOT’s announcement.
“Taking care of passengers is not just the right thing to do — it’s required, and this penalty should put all airlines on notice to take every step possible to ensure that a meltdown like this never happens again,” Buttigieg said in a statement.
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